This year will be the biggest yet for e-commerce. What that means for you and I is a flood of returns heading for the secondary market in a few months. Typically, around 10% of all sales will become returns and those returns will become liquidation lots in January and February.
With consumer electronics topping many holiday gift wish lists, you can expect a flood of returns in the category. Computers, tablets, phones, TV's, Apple TV's and all the other 'hot' gift items this year, will be in ample supply. Not is the time to begin accumulating capital by reducing your inventory so you are prepared when this tidal wave hits.
Excess inventory creates a great opportunity for entrepreneurs to make money. As the supply of excess inventory, including returns and overstock inventory, increases after the holidays prices often come down. The most important contributor to making money buying and selling excess inventory is the price at which you buy. You make your money when you buy...not when you sell.
My advice: accumulate cash and be ready to buy after the holidays, when the supply is at its peak. You will enjoy the benefits of those lower prices for months to come as you sell your stock for a healthy profit.